Why am I passionate about this?
I’ve been an independent investor for nearly 25 years. In my previous life as an employee, I was a research actuary for a firm of pension consultants, and then a university lecturer. I left my last academic job at the age of 35 because I had made enough money to survive, and freedom was worth more to me than a salary. FIRE (Financial Independence – Retire Early) is what it’s called these days, but with two differences. First, I’m not retired: I spend most of my time on investing, but entirely on my own terms. Second, and relatedly, I’m an active investor, albeit a cheap one, nearly as cheap as an index fund.
Guy's book list on making a fortune in the stock market
Why did Guy love this book?
This could be better written (too many page-length paragraphs), but it earns its place on this list because the topic is important and I don’t know of any better treatment.
Many investment pundits advocate rigid self-control: they say you should try to suppress all emotion in investment decision-making – which is probably infeasible, and in any case undesirable. This book suggests a higher aspiration: aim to have the right emotions, those which are accurately calibrated to the contours of truth.
1 author picked The Emotionally Intelligent Investor as one of their favorite books, and they share why you should read it.
The Emotionally Intelligent Investor challenges several long-held assumptions and beliefs, by asserting that a good investment approach starts with introspection. Too many investment gurus tell you to emulate their techniques despite the fact that you may have very different personality traits, motivations and biases. Would Shaquille O’Neal tell a short basketball player to play like him? This book provides a unique template for self-reflection and a framework for developing an investment approach that works best with who you are.Whereas the consensus opinion is that investing success comes from blocking out emotions and making purely rational decisions, the best money managers…